- Novo Resources Corp (TSXV:NVO) has purchased the Mount Elsie project in Western Australia
- The mid-tier miner has entered into a terms sheet agreement to acquire the three exploration licenses that make up the project
- The company will pay for the acquisition by issuing 324,506 Novo Resources shares, and a cash payment of approximately C$93,311
- Novo currently holds 13,000 square kilometres of exploration lease in the region, including the Beatons Creek gold project
- Novo Resources Corp (NVO) is down 1.8 per cent and is trading at $3.19 per share
Novo Resources Corp (TSXV:NVO) has purchased the Mount Elsie project in Western Australia.
The mid-term Vancouver based miner has agreed to a terms sheet agreement to acquire the three exploration licenses that form the project.
To pay for this acquisition, Novo will issue the sellers some 324,506 Novo Resources shares, along with a cash payment of approximately C$93,311.
The licenses make up 19 square kilometres of exploration permits and are located approximately 75 kilometres north of the town of Nullagine in the Pilbara region of Western Australia.
Given Novo shares are currently trading at $3.19 per share, the share offer is worth approximately $1.04 million.
The deal is subject to regulatory approval from both the Western Australian Government and the TSXV exchange.
President and Chairman of Novo Resources, Quinton Hennigh said the acquisition would further consolidate its foothold in the East Pilbarra region.
Novo holds 13,000 square kilometres of exploration lease in the Pilbara, including the Beatons Creek gold project, a large-scale gold exploration project very near to the Mount Elsie project.
“Numerous high-priority bedrock and alluvial gold targets have been identified by Novo staff at the Mount Elsie project.
“We see the Mount Elsie project as a new, important part of our strategy to build a future hub of produdction around our well-advanced Beatons Creek gold project near Nullagine,” he said.
Novo will soon begin generating drill targets at the site, to be tested later this year.
Novo Resources (NVO) is down 1.8 per cent and is trading at $3.19 per share at 3:00 pm EDT.